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NATIONAL SAVINGS AND INVESTMENTS RATE CHANGES
26 June 2003
National Savings and Investments (NS&I) has announced new issues of its fixed rate products (see Annex A for details).
These new rates reflect falls in market rates, which have affected banks and building societies across the board, with many making changes to their fixed term products in recent weeks. Since February, for example, returns (yields) on 5-year Government Bonds (gilts) have fallen by around 0.15%.
NS&I have not made changes to any variable rate products since February 2003, when the Bank of England last made a change in the base rate .
ENDS
Notes to Editors
Annex A
New Issues of Fixed Rates
Available from June 26 2003
Gross Rates*
| | Rate pa (change in brackets) | AER** |
1-year Pensioners Guaranteed Income Bonds
Series 17 | 2.90% (-0.10%) | 2.94% |
2-year Pensioners Guaranteed Income Bonds
Series 23 | 3.05% (-0.10%) | 3.09% |
5-year Pensioners Guaranteed Income Bonds
Series 32 | 3.45% (-0.15%) | 3.51% |
1-year Fixed Rate Savings Bond
Issue 20 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option | £50,000+
£20,000+
£500+ |
|
2.95% (-0.10%)
2.75% (-0.10%)
2.60% (-0.10%)
2.90% (-0.10%)
2.70% (-0.10%)
2.55% (-0.10%) |
2.95%
2.75%
2.60%
2.94%
2.73%
2.58% |
3-year Fixed Rate Savings Bond
Issue 13 | £50,000+
£20,000+
£500+ |
| |
monthly interest option |
£50,000+
£20,000+
£500+ |
|
3.30% (-0.15%)
3.10% (-0.15%)
2.90% (-0.15%)
3.25% (-0.10%)
3.05% (-0.15%)
2.85% (-0.15%) |
3.30%
3.10%
2.90%
3.30%
3.09%
2.89% |
5-year Fixed Rate Savings Bond
Issue 11 |
£50,000+
£20,000+
£500+ |
| |
monthly interest option
| £50,000+
£20,000+
£500+ |
|
3.55% (-0.15%)
3.35% (-0.15%)
3.20% (-0.15%)
3.45% (-0.15%)
3.30% (-0.10%)
3.15% (-0.15%) |
3.55%
3.35%
3.20%
3.51%
3.35%
3.20% |
Capital Bonds - Guaranteed compound rate over 5 years
Issue 11 |
3.50% (-0.40%) |
3.50% |
| Tax-free Rates |
Rate pa/ AER** (change in brackets) |
|
Children's Bonus Bonds - Guaranteed compound
rate over 5 years
Issue 7 |
3.20% (0.15%) |
|
| |
|
Equivalent grossed up rate for basic rate taxpayers**** |
Equivalent grossed up rate for higher rate taxpayers**** |
2-year Fixed Interest Savings Certificates
19th Issue
Guaranteed compound rate over 2 years |
2.25% (-0.15%) |
2.81% |
3.75% |
5-year Fixed Interest Savings Certificates
69th Issue
Guaranteed compound rate over 5 years |
2.55% (-0.15%) |
3.19% |
4.25% |
3-year Index-linked Savings Certificates
1st Issue
Guaranteed compound rate over 3 years |
Index-linking + 0.45% |
Index-linking + 0.56% |
Index-linking+ 0.75% |
5-year Index-linked Savings Certificates
28th Issue
Guaranteed compound rate over 5 years |
Index-linking + 0.70% (-0.10%) |
Index-linking + 0.88% |
Index-linking + 1.17% |
2-year Index-linked Savings Certificates were withdrawn from sale on June 25.
* Gross means the taxable rate of interest without the deduction of UK Income Tax.
** AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same.
*** Tax-free means the return is exempt from UK Income Tax at all rates of taxation.
**** At current tax rates
Media Information
| Mark Brooks | 020 7348 9301 | mark.brooks@nsandi.com |
| Jonathan Akerman | 020 7348 9433 | jonathan.akerman@nsandi.com |
| Wendy Franklin | 020 7348 9449 | wendy.franklin@nsandi.com |
| Fax | 020 7348 9755 | |
| Out of hours | 07778 966387 | |
Media team
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